HJR 23-CONST. AM: GOVERNOR'S PROPOSED BUDGET    3:59:42 PM CHAIR CARRICK announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 23, Proposing an amendment to the Constitution of the State of Alaska requiring the governor to submit a balanced budget to the legislature. REPRESENTATIVE JUBILEE UNDERWOOD, Alaska State Legislature, as prime sponsor introduced HJR 23. This resolution proposes a constitutional amendment focused on the structure of Alaska's budget process. It addresses how the process begins with the governor's budget and accompanying revenue bills. This resolution asks whether Alaska would benefit from statutory changes and whether the fiscal framework should be changed to improve the structure for the future. 4:02:00 PM BUDDY WHITT, Staff, Representative Jubilee Underwood, Alaska State Legislature, presented on HJR 23, on behalf of Representative Underwood, prime sponsor. He said this resolution is simple, and the presentation shares the constitutional framework and requirements. He began a PowerPoint [hard copy included in the committee packet]. He shared the constitutional requirements under Art. IX, Sec 12 shown on slide 2. Statutory timing requirements are outlined on slide 3. On slide 4, required bill separation and balanced budget requirement are shared as outlined in statute. Long- range planning is addressed, including the six-year capital improvements program and the 10-year fiscal plan projections on slide 5. On slide 6, the format and supporting information required in AS 37.07.050 is presented. He shared amendments & supplemental budgets information on slide 7. The governor must submit a balanced budget that doesn't include the constitutional budget reserve (CBR) which is outlined on slide 8. In closing, he stated that the bill sponsor believes the budget should begin with a plan on slide 9. On slide 10, he stated that HJR 23 does not dictate policy. 4:07:42 PM REPRESENTATIVE ST. CLAIR said that expenditures don't exceed revenue. He asked what sources are being used as revenue. MR. WHITT replied that the legislation doesn't try to answer that question. The resolution requires a budget that must balance and not use the CBR. REPRESENTATIVE VANCE said she appreciates the additional charts that show the budget, revenue, and deficits for the last nine years. She wondered why the supplemental budget is not listed and whether HJR 23 would impact the supplemental budget. MR. WHITT replied that the bill sponsor's intent is that it would lower supplemental budgets. He said budgets would be more accurate on expenditures and revenues. This resolution is not focused on the supplemental budget but focused on the initial governor's budget. 4:12:59 PM REPRESENTATIVE UNDERWOOD replied that simply not starting in a deficit and having a good starting point is the whole intent. She said it is fiscally responsible to not start in a deficit. REPRESENTATIVE MCCABE asked whether this would be on November's ballot for the voters. REPRESENTATIVE UNDERWOOD replied yes, if everything goes as planned. REPRESENTATIVE MCCABE stated there have been 28 ballot measures; 12 have been rejected and the last one passed 22 years ago. 4:14:38 PM REPRESENTATIVE STORY asked whether the long-range plan is supposed to be balanced and whether other states require a balanced budget with the accompanying revenue bills. MR. WHITT replied he doesn't know about other states but will get back to the committee. Long-range plans are a statutory requirement. This legislation doesn't touch on the long-range plan and any of the requirements. 4:16:39 PM CHAIR CARRICK asks if currently the governor can submit a deficit budget if he provides revenue measures to fill the deficit. MR. WHITT replied yes. The governor must offer revenue bills if needed. CHAIR CARRICK stated those revenue bills are supposed to cover the deficit. She asked whether there has ever been a governor who has done this. MR. WHITT replied he doesn't have the information but will get it. 4:18:36 PM REPRESENTATIVE HIMSCHOOT said that she served on the local assembly. The assembly budget would be balanced but the opportunity cuts would be included. She asked whether other levels of government were required to do this as well. She said it is common practice to know the gap. REPRESENTATIVE UNDERWOOD responded that in her experience from the school board budget, it was presented with a few different options. The budget was built backwards and at the end of the day it was a balanced budget. 4:21:00 PM CHAIR CARRICK opened public testimony on HJR 23. LARISA FONOV, representing self, testified in support of HJR 23. She stated that starting with a balanced budget that doesn't use the savings will ensure a more stable future. She asked the committee to pass HCR 23 out of the committee. ED MARTIN, representing self, testified that he does not support HJR 23. He said he e-mailed his testimony to the committee. RYAN SHELDON, representing self, testified in support of HJR 23. As a businessperson, he said, it makes sense to work within the budget. He said HJR 23 has great bipartisan support. 4:26:59 PM CHAIR CARRICK after ascertaining there was no further testimony, she closed public testimony on HJR 23. 4:27:15 PM CHAIR CARRICK announced HJR 23 was held over.